Consumer Spending Collapsed By Most In History Along With April New Car Sales, Savings Rate Jumps
The worst news for those officials hoping the stimulus checks would spur spending is it hasn't. Consumer spending has collapsed by the most ever recorded MoM. For the US economy this is a very bad sign as spending is as much as 70% of GDP which according to wall street analysts could drop as much as 40% for Q2 and the projections continue to be downgraded as the time rolls by. New car sales have also taken the worst plunge ever recorded for April. Analysts at Edmunds hope for some pent up demand to be present when the economy gets moving again however it may be a dream since economic uncertainty is at a shocking peak. I don't agree that consumers will be waiting to rush to the car dealership to purchase a new car especially with the collapse seen in used car prices as auctions across the country have remained closed. It may actually have been a blessing for these auto manufacturers to have had so much downtime since it would have only added to operating expenses at a time when sales are almost nonexistent. A rough road ahead is the only certain thing in this economy.